Trends That Shape the Future of Retirement

Hey welcome to this segment on the five trends that are shaping the future of retirement. You know as this aging workforce continues to evolve and things such as inflation and healthcare costs and different spending goals and retirement dreams. You know you’re starting to see some pretty significant shapes of changes in this retirement landscape. So the first one is pretty big and that’s the retirement savings gap is increasing. You know there is 41% of Americans right now have hit pause during 2022 on their retirement savings. And so what they’re going to need in their retirement savings account versus what they’re going to be spending. You know that gap is continually growing. And the things that have affected that such as inflation or higher costs on just your day to day expenses, you know is something down the road by 2030, could definitely be a problem. It’s affecting you know Gen Z and Millennials more than it is the aging workforce. But it’s definitely changing the shape of future retirement. The next one is just that aging workforce. You know these Baby Boomers are basically saying hey, I actually kind of like my work. Or maybe they’re doing what’s called a phased retirement where they’re saying I’m going to work from Memorial Day until Labor day. Or I’m going to work 20 hours a week or I’m going to work Monday and Tuesdays. So these employers are actually really working with these you know, Baby Boomers to say what do you want this next phase of retirement to look like? We love your expertise. We love your wisdom. We love your work ethic, you know your responsibility and dedication to the particular job is being rewarded with some pretty unique work experiences that they’re allowed to have. And so because of that, it’s not just a typical I’m going to go work for 40 years and then call it a day. I’m going to get a company pension. I’m going to call Social Security and I’m going to let my retirement accounts kind of fund the fund money. Okay, it’s very much changing right now where maybe it’s a healthcare need where people are working a little bit longer than they typically would be because they need that health insurance until they get to age 65. Just different things, the age of retirement is an ever shifting landscape. The third thing that’s changing is there’s been a push towards a more holistic approach in these retirement plans. What they’re recognizing is that these younger employees might have not been taught a lot about retirement, savings, emergency funds you know as they enter their acquisition years. Okay, so if you think of your acquisition years you might be buying an education. So there is going to be some student loan debt. You might be buying a vehicle so you can get to your job or get to school. You might be buying your first house. You might be starting to save for retirement. So you’ve got all these acquisitions of new things that do cost a lot. And what these employers are doing is they’re starting to put a lot of helpful resources in this on boarding of new employees where as they’re going through their job experiences, they actually have that resource for some holistic approach to retirement savings and getting them set up. The next one would be evolving retirement investments and advice. Okay, we’re in a market right now where you can kind of choose how you want your money to behave and that’s phenomenal. You know you can make your money, if this is our axis, you can make your money go up at a fixed rate. There’s some phenomenal fixed rates. There are indexed, fixed indexed annuities that will make your money behave and they’ll link your growth to the stock market, like the S&P 500. So if the S&P 500 is up, you get to go up in your account. If the S&P 500 is negative, you get a 0% return. You don’t lose a penny. You have that principle protection. And so it becomes like you’re walking up the stairs. Okay, once you lock in that new rate, that’s what you have for the next year. That’s how your money can behave. And then finally, you can always make your money behave like what the markets do, the bond market and the stock market where it’s going to fluctuate. So as you’re looking at that advice, we are always here to help. You can call the number on the screen. You can go to our website. You can go to http://YouTube.com/RetiringWell to get a lot of this information and that holistic individualized approach to retirement planning. And then finally, just that personalized plan. You know when we have clients come in and sit down and they’re shopping to figure out what they need to do, we love that in depth conversation where we can get very individualized and we can figure out what you need. What you might want to look at. What you don’t know about and then go from there. So thank you so much for watching. I hope this adds value to your life. Have a great day.